The Hanover Insurance Group, Inc. (NYSE:THG) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of The Hanover Insurance Group, Inc. (NYSE:THG) have received a consensus recommendation of “Moderate Buy” from the ten research firms that are presently covering the firm, MarketBeat reports. Three analysts have rated the stock with a hold rating, five have issued a buy rating and two have issued a strong buy rating on the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $210.5714.

A number of brokerages have recently weighed in on THG. BMO Capital Markets lowered The Hanover Insurance Group from an “outperform” rating to a “market perform” rating and lifted their price objective for the stock from $194.00 to $203.00 in a research report on Tuesday, May 19th. Weiss Ratings upgraded shares of The Hanover Insurance Group from a “buy (b+)” rating to a “buy (a-)” rating in a report on Friday, May 22nd. Piper Sandler raised their target price on shares of The Hanover Insurance Group from $212.00 to $220.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 26th. Royal Bank Of Canada boosted their price target on shares of The Hanover Insurance Group from $190.00 to $195.00 and gave the company a “sector perform” rating in a research report on Friday, May 1st. Finally, Morgan Stanley increased their price target on shares of The Hanover Insurance Group from $195.00 to $220.00 and gave the stock an “equal weight” rating in a research note on Monday.

The Hanover Insurance Group Trading Up 1.5%

THG stock traded up $3.22 during midday trading on Tuesday, hitting $223.41. The company had a trading volume of 21,269 shares, compared to its average volume of 326,270. The stock has a market cap of $7.82 billion, a price-to-earnings ratio of 11.20 and a beta of 0.28. The Hanover Insurance Group has a 52 week low of $160.97 and a 52 week high of $224.99. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.22. The stock’s 50 day moving average price is $195.91 and its 200 day moving average price is $183.02.

The Hanover Insurance Group (NYSE:THG) last issued its earnings results on Wednesday, April 29th. The insurance provider reported $5.25 EPS for the quarter, topping the consensus estimate of $4.14 by $1.11. The company had revenue of $1.70 billion for the quarter, compared to the consensus estimate of $1.58 billion. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%. The firm’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same period in the previous year, the firm earned $3.87 earnings per share. As a group, equities research analysts expect that The Hanover Insurance Group will post 18.36 earnings per share for the current fiscal year.

The Hanover Insurance Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were given a $0.95 dividend. The ex-dividend date of this dividend was Friday, June 12th. This represents a $3.80 annualized dividend and a dividend yield of 1.7%. The Hanover Insurance Group’s dividend payout ratio is currently 19.12%.

The Hanover Insurance Group declared that its Board of Directors has initiated a stock repurchase program on Wednesday, May 13th that permits the company to repurchase $700.00 million in shares. This repurchase authorization permits the insurance provider to buy up to 10.6% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Activity at The Hanover Insurance Group

In related news, EVP Dennis Francis Kerrigan sold 6,262 shares of the company’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $192.99, for a total value of $1,208,503.38. Following the sale, the executive vice president directly owned 11,988 shares of the company’s stock, valued at $2,313,564.12. This represents a 34.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Francisco Aristeguieta sold 1,000 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $195.37, for a total value of $195,370.00. Following the completion of the transaction, the director owned 4,053 shares of the company’s stock, valued at approximately $791,834.61. This trade represents a 19.79% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 29,508 shares of company stock valued at $5,704,651 over the last ninety days. Insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On The Hanover Insurance Group

Institutional investors have recently modified their holdings of the stock. JPL Wealth Management LLC bought a new position in shares of The Hanover Insurance Group during the third quarter valued at $26,000. Community Bank N.A. purchased a new position in The Hanover Insurance Group in the third quarter worth about $27,000. McMillan Office Inc. purchased a new position in The Hanover Insurance Group in the fourth quarter worth about $31,000. Entrust Financial LLC bought a new position in shares of The Hanover Insurance Group in the fourth quarter worth approximately $33,000. Finally, Root Financial Partners LLC lifted its stake in shares of The Hanover Insurance Group by 69.3% in the first quarter. Root Financial Partners LLC now owns 237 shares of the insurance provider’s stock worth $41,000 after buying an additional 97 shares in the last quarter. 86.61% of the stock is owned by hedge funds and other institutional investors.

About The Hanover Insurance Group

The Hanover Insurance Group, Inc (NYSE: THG) is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers’ compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.

In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.